Stimulus uncertainty weighed on U.S. Equity Markets, finishing the day lower, led by the Russel 2000, which closed with a loss of 0.57%. worries over halted coronavirus vaccine trials and stimulus breakdowns weighed on markets. Sanofi and GlaxoSmithKline halted their COVID-19 vaccine trial and said their vaccine did not generate enough of an immune response in older people. They also pushed the rollout back to late next year. But it was not all bad news on the vaccine front. The Food and Drug Administration’s advisory panel said the benefits of Pfizer and BioNTech’s coronavirus vaccine outweighed the risks in people 16 and older, voting to approve it 17 to 4. Yet, stimulus talks were still an overhang. Senate Majority Leader Mitch McConnell said he did not see a path to agreement on the outstanding issues. This was echoed by Senate Majority Whip John Thune. COVID-19 restrictions also sparked selling, after New York Governor Andrew Cuomo ordered New York City to shut down indoor dining. European Markets closed lower. British Prime Minister Boris Johnson said there’s a “strong possibility” that the U.K. won’t reach a trade deal with the European Union when the two split at year’s end. European Commission President Ursula von der Leyen said the same obstacles remain in post-Brexit trade talks with the U.K., and a no-deal split is the most likely outcome. The European Central Bank introduced an additional $606 billion worth of liquidity into the financial system via Asset Purchases while also improving the terms for bank funding. Germany’s Bundesbank said it expects the economy to see a minor setback from the second wave of COVID-19 before rebounding sharply. Last night, the chances of a ‘’ Brexit Deal’’ improved after both sides agreed to continue talks this week. Equity Futures and Sterling are sharply higher this morning as a result. Elsewhere, Oil closed 0.43% lower on profit-taking after Brent crude finished above $50 for the first time since March, while Gold closed 0.30% higher.
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For anyone following my Platinum Service it made 230 points last Friday and is now ahead by 865 points for December, having finished November with a gain of 2025 points, 2779 points in October, 3042 points in September, 2383 points in August, 3128 points in July, 2580 points in June, 2456 points in May, 4773 points in April, an incredible 9264 points in March, 2223 points in February and 2142 points in January. Since I started this New Platinum Service in June 2015 it has averaged a monthly gain of over 1600 points
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The S&P 500 closed 0.13% lower at a price of 3663.
The Dow Jones Industrial Average closed 47 points higher for a 0.16% gain at a price of 30,046.
The NASDAQ 100 closed 0.21% lower at a price of 12,375.
The Stoxx Europe 600 Index closed 0.4% lower.
The MSCI Asia Pacific Index rose 0.3%.
This morning the Nikkei closed 0.30% higher at a price of 26,732.
The Bloomberg Dollar Spot Index closed 0.2% lower.
The Euro closed 0.1% higher at $1.2135.
The British Pound fell 0.3% to close at $1.3245.
The Japanese Yen closed 0.2% higher at 104.05 per dollar.
Germany’s 10-year yield closed unchanged at -0.61%.
Britain’s 10-year yield closed five basis points lower at 0.17%.
US 10 Year Treasury closed two basis points lower at 0.91%.
West Texas Intermediate crude closed 0.41% lower at $45.70 a barrel.
Gold closed 0.3% higher at $1,835.20 an ounce.
This morning on the Economic Front we have Euro-Zone Industrial Production at 10.00 am. We have no other data of no other on either side of the Atlantic. However, the U.S Electoral College vote is today when the 538 members vote for the President and Vice-President, based on last Month’s Election.
December S&P 500
Yet again the buy the dip wins the day with the S&P now trading over 50 Handles higher from last Friday morning’s 3628 low print. My S&P plan worked well with the market trading lower to my 3636 buy level before rallying to my 3646 revised T/P level and I am now flat. Optimism on the vaccine roll-out and the Brexit talks being extended sees the S&P trading at 3681 this morning. This is the seventh Monday out of the last Eight that the S&P is opening with a large Gap. I will continue to be a seller on any further rally to 3693/3710 with a 3721 stop. We have support from 3643/3660 where I will be a buyer with a 3625 ‘’Closing Stop’’ which is just below last Friday’s low print.
I am still flat the Euro as the market again traded in a narrow range. I will now raise my buy level to 1.2030/1.2080 with a higher 1.1985 stop. I will also raise my sell level to 1.2195/1.2245 with a 1.2281 tight stop.
March Dollar Index
I am still flat as I continue to be a buyer on any further dip lower to 89.80/90.30 with the same 89.45 stop. If I am taken long I will have a T/P level at 90.65.
My DAX plan worked well with the market trading lower to my 13050 buy level before rallying to my too tight 13095 T/P level and I am still flat. Thankfully we had no sell level in the DAX with the market opening higher at 13235 this morning. This move higher comes despite comments from the German Economy Minister that the Coronavirus is out of control. Equity Markets will expect more Stimulus as Germany closes its shops from Wednesday until January 10. The DAX has support from 13050/13120 where I will be a small buyer with a 12985 stop. I still do not want to be short the DAX at this time.
No Change as I am still a seller in any further rally to 6610/6670 with the same 6735 stop. I still do not want to be long the FTSE at this time.
Dow Rolling Contract
My Dow plan worked well with the market trading lower to my 29740 buy level before rallying to my too tight 29825 T/P level and I am now flat This morning the Dow is opening higher at 30200 as yet again anyone trying to short the Dow for more than a couple of days is slammed. The Dow has resistance from 30400/30600 where I will be a small seller with a 30745 ‘’Closing Stop’’. We have support from 29820/30020 where I will be a buyer with a 29675 stop.
The NASDAQ fell shy of my 12180 buy level before rallying 200 points to sit at 12420 this morning. I will now raise my sell level slightly to 12490/12570 with a higher 12645 stop. I will also raise my buy level to 12180/12260 with a higher 12095 stop.
The sell-off in Equity Markets on Friday morning saw the BUND trade higher to my 178.60 sell level. I am still short and I will now raise my T/P level to 178.35. I will add to my short position on any further move higher to 179.00 with a now higher 179.40 stop. If any of the above levels are hit I will be back with a new update for my Platinum Members.
Gold Rolling Contract
No Change as I am still a small buyer from 1790/1805 with a 1779 stop.
Silver Rolling Contract
Silver continues to make lower highs and I am still flat. I will now lower my buy level to 22.60/23.20 with a 22.15 stop. If I am taken long I will have a T/P level at 23.55.